Eleving Group raises EUR 10 mln from ACP Credit for further business expansion in Romania
Eleving Group, a global multi-brand fintech company operating in the vehicle and consumer financing business, has just raised EUR 10 mln for its business in the Romanian market. The funding has been raised from ACP Credit, Central Europe’s leading provider of financing solutions for middle-market businesses, and is made available to Mogo Romania, a subsidiary of Eleving Group.
As stated by the CEO of Eleving Group, Modestas Sudnius, this is a significant milestone, as outside the Mintos marketplace, this is the company’s first external funding partner onboarded in Romania.
“Eleving Group has been present in Romania since 2016, and it has become one of the Group’s largest and most successful markets, not only with good historical financial results but also with a large number of returning customers each year. The attracted funding will help us unlock the doors for further financing opportunities, proving that Mogo Romania has passed the governance, transparency, AML, and legal criteria important for any reliable international partner operating in the capital markets. In addition, this funding will help us to take a step further in our growth ambitions and position ourselves better in the market in the long run,” comments Modestas Sudnius.
According to the agreement, the funds raised will be used to refinance Mintos’ liabilities and grow Mogo Romania‘s portfolio.
“We can observe sustained and growing demand for car loans in the geographies we operate. On top of that, our successful experience with Eleving Group has resulted in the confidence that the company understands the business and can effectively tap the potential of the Romanian car financing market. Combining these two factors makes us feel confident that this cooperation will be rewarding and that we will witness the success story of another locally operating company in Romania,” adds Ciprian Nicolae, Managing Partner of ACP Credit.
For the local team, the transaction represents a new opportunity for accelerated development.
„The financing marks an important step for Mogo Romania and an incentive for our accelerated growth in the local market. We aim to remain a reliable partner for our customers while also prioritizing sustainability and digitization standards, important in our strategy to streamline and consolidate our internal processes”, declares Marilena Tetici, Chief Financial Officer and Deputy General Director of Mogo Romania.
About Eleving Group
Eleving Group, founded in 2012 under the name Mogo Finance, currently operates in 16 global markets and on three continents, offering financial services in the mobility and consumer segments. The Group includes the mobility brands Mogo, Primero, Renti, and OX Drive, and the vehicle finance segment accounts for 70% of its operations. In contrast, the consumer finance segment, with Kredo, Sebo, Tigo, and ExpressCredit business, accounts for around 30% of the portfolio. The Group’s historical customer base exceeds 500,000 customers worldwide, while the total volume of loans issued is approximately EUR 1.6 billion. The Group’s main mission is to serve groups of society that are not customers of traditional banks and to promote an inclusive economy through innovative, easy-to-use, and understandable financial products. The Group ended the nine months of 2023 with solid results across all key business metrics, achieving adjusted EBITDA of EUR 58.5 mln and reporting EUR 136.0 mln in revenue and EUR 23.5 mln in adjusted net profit before FX. The Group’s net portfolio increased to EUR 327.3 mln. In the second quarter of this year, the international credit rating agency Fitch affirmed Eleving Group’s B- rating with a stable outlook.
About Mogo Romania
Mogo Romania has been operating since 2017, financing individuals and authorized individuals for new or used car acquisition. Until now, Mogo has financed over 12,000 customers.